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At LARGE Corporation Ltd., prepaid costs are debited to expense when cash is paid and unearned revenus are credited to revenue when the cash
At LARGE Corporation Ltd., prepaid costs are debited to expense when cash is paid and unearned revenus are credited to revenue when the cash is received. This month, January, the following transactions took place. January 2nd: Received $10,900 for services to be performed in the future. Paid $5,450 for insurance for the year. January 12th: Paid $7,000 for supplies. At the end of the month, they find that $2,900 of the service revenue has been earned and that $1,500 of supplies are still on hand. Create T-accounts for these accounts, and determine their ending balances. Cash, prepaid insurance, supplies, unearned revenue, supplies expense, service revenue, insurance expense
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